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A California appeals court has ruled against a plan put forward by the University of California, Berkeley, to develop student housing in People’s Park, the Los Angeles Times reported.

Two nonprofit groups sued to block the plan. The appeals court said the suit was correct in stating that Berkeley “failed to assess potential noise impacts from loud student parties in residential neighborhoods near the campus, a longstanding problem that the [environmental review] improperly dismissed as speculative.” The court also ruled that the campus failed to justify its decision not to consider alternative locations to the People’s Park project.

Berkeley said it would appeal to the California Supreme Court.

“Left in place, this decision will indefinitely delay all of UC Berkeley’s planned student housing, which is desperately needed by our students and fully supported by the City of Berkeley’s mayor and other elected representatives,” said a statement from the university. “This decision has the potential to prevent colleges and universities across the State of California from providing students with the housing they need and deserve.”